Apple executives Eddy Cue, John Giannandrea, and Adrian Perica will testify in an antitrust investigation into Google's alleged abuse of its search engine dominance, despite Apple's argument that it would be burdensome; Apple's multi-billion dollar deal with Google is a key aspect of the case.
The US Justice Department has started a 10-week trial against Google, accusing the company of monopolistic practices in dominating the search engine market through its business partnerships, including with Apple, to ensure its search engine is the default on mobile devices.
Google will face a high-stakes antitrust trial brought by the US government and multiple states, which could have significant implications for the tech giant's dominant search business.
Google maintains a dominant position in the global search engine market with a 90.7% market share, while its competitors like Bing and Yahoo lag far behind, according to data from Similarweb. However, Google is currently facing a civil antitrust lawsuit by the U.S. Justice Department for alleged anticompetitive practices. Bing, despite its AI-powered version, has not made significant progress in challenging Google's dominance.
The Justice Department's antitrust trial against Google began with claims that the company pursued agreements to be the default search engine on mobile devices, while Google argued that its search engine's quality was the primary reason for such agreements.
Google allegedly paid billions of dollars to key companies to maintain its search engine as the default on computers and mobile devices, making it difficult for smaller rival DuckDuckGo to grow its market share, according to testimony by DuckDuckGo CEO Gabriel Weinberg at a trial investigating alleged antitrust violations by Google.
Apple's senior vice president of ML and AI strategy, John Giannandrea, testified in the Department of Justice antitrust suit against Google and highlighted a new feature in iOS 17 that allows users to choose two different default search engines for normal browsing and private browsing.
The Department of Justice has filed an antitrust lawsuit against Google, alleging that the company's billion-dollar deals to be the default search engine on smartphones have created a monopoly, and if the trial is successful, Google may be forced to break up its various businesses.
Microsoft's Bing search engine has always been just a bargaining chip for Apple in its search-engine wars with Google, according to a Microsoft executive, who also revealed that Microsoft has been trying for years to convince Apple to switch to Bing as the default search engine for iPhones.
A Google executive compared the addictive nature of the company's search engine to that of cigarettes or drugs, as revealed in meeting notes that were initially hidden from the public in the Google search antitrust trial.
Apple has the ability to create its own search engine, potentially rivaling the revenue from the Apple Watch market, due to its existing search engine capabilities in services such as the App Store, Maps, Apple TV, and News.
Microsoft CEO Satya Nadella testified in the U.S. antitrust fight between the Justice Department and Google, dismissing the idea that it is easy to change defaults on devices and revealing that Microsoft had sought to make Bing the default search engine on Apple smartphones but was rejected.
Microsoft CEO Satya Nadella testified during the US government's antitrust trial against Google, warning of a "nightmare" scenario for the internet if Google's dominance in online search continues, as it could give Google an unassailable advantage in artificial intelligence (AI) due to the vast amount of search data it collects, threatening to further entrench its power.
Apple has the potential to compete with Google in building a search engine, as it has a strong search team and has developed a next-generation search engine called "Pegasus," but currently, Apple benefits from the $15 billion annual payment it receives from Google to keep Google Search as the default on Safari.
The US Federal Trade Commission is investigating Amazon and Google for alleged monopolistic practices, with Microsoft CEO Satya Nadella testifying against Google's attempts to monopolize the search market by paying to make its search engine the default choice for Apple and Android.
Google's payment to Apple for maintaining its position as the default search engine on iOS devices is estimated to be between $18 billion and $20 billion per year, according to financial advisor Bernstein, with the deal accounting for 14-16% of Apple's annual operating profits; however, the ongoing antitrust trial against Google could put this agreement at risk.
The antitrust case against Google puts the annual payment it makes to Apple for being the default search engine at risk, which constitutes 14-16% of Apple's profits, but Bernstein analysts believe Apple has options to mitigate the potential impact, such as partnering with another search engine or launching its own.
Apple's long-standing and lucrative agreement with Google to have it as the default search engine on Safari across its products has prevented Apple from developing its own search product and solidifies Google's dominance in the search industry, according to evidence presented in the US v. Google antitrust trial.
Google CEO Sundar Pichai expressed concerns about the optics of Google's deal with Apple, which made Google the pre-selected search option on Apple's Safari browser, according to emails introduced as evidence in the Justice Department's antitrust case against Google.
Google could be paying Apple between $18 billion to $20 billion a year to maintain its status as the dominant search engine on the iPhone, potentially generating 14-16% of Apple's annual operating profits, but this agreement may be at risk due to an ongoing antitrust suit.
The U.S. Department of Justice is leading a major antitrust trial against Google, accusing the search engine company of using illegal methods to crush competition and maintain an unfair advantage; if ruled in favor of the government, the trial could result in new online search possibilities for users and businesses and potentially change the way Google operates in the future.
Google is accused of illegally protecting a monopoly in online search through multibillion-dollar contracts and default search engine agreements, harming consumers and advertisers, as the government wraps up its case in a landmark monopoly trial.
Google has been concerned about Apple's potential expansion into internet search, and has been working on strategies to prevent it, including developing its own version of Apple's search tool and leveraging a European law to undermine Apple's control over the iPhone.
Google executives explored using EU law to undermine Apple's power and reduce the payment they make to Apple to maintain their default search engine status on Apple devices, as part of an antitrust case brought against Google by the Department of Justice.
